Western Refining

Last updated
Western Refining, Inc.
Subsidiary
Traded as NYSE: WNR
Industry Oil
Founded 1997
Headquarters El Paso, Texas , USA
Number of locations
3 Oil refineries, 543 retail locations [1]
Area served
United States
Mexico
Key people
Jeff A. Stevens(Chief Executive Officer)
Paul L. Foster (Chairman of the Board)
Products Refined products
Production output
Crude oil
Services Convenience stores
Service stations
RevenueIncrease2.svg $ 15.2 billion (2014). [2]
Increase2.svg $ 1.1 billion (2014). [3]
Increase2.svg $ 710.1 million (2014). [4]
Total assets Increase2.svg $ 5.67 billion (2014). [5]
Total equity Increase2.svg $ 2.79 billion (2014). [6]
Number of employees
5,700 [7]
Parent Marathon Petroleum
Subsidiaries Western Refining Logistics
Website WNR.com

Western Refining, Inc., is a Texas-based Fortune 200 [8] and Global 2000 [9] crude oil refiner and marketer operating primarily in the Southwestern, North-Central and Mid-Atlantic regions of the United States. Western Refining (WNR) has been publicly traded on the New York Stock Exchange since January 2006 and is the fourth largest publicly traded independent refiner and marketer in the nation. [10] Western Refining has been acquired by Tesoro another independent petroleum Refining and marketing corporation.

<i>Fortune</i> 500 Annual list compiled and published by Fortune magazine

The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks 500 of the largest United States corporations by total revenue for their respective fiscal years. The list includes publicly held companies, along with privately held companies for which revenues are publicly available. The concept of the Fortune 500 was created by Edgar P. Smith, a Fortune editor, and the first list was published in 1955. The Fortune 500 is more commonly used than its subset Fortune 100 or superset Fortune 1000.

The Forbes Global 2000 is an annual ranking of the top 2,000 public companies in the world by Forbes magazine. The ranking is based on a mix of four metrics: sales, profit, assets and market value. The list has been published since 2003.

New York Stock Exchange American stock exchange

The New York Stock Exchange is an American stock exchange located at 11 Wall Street, Lower Manhattan, New York City, New York. It is by far the world's largest stock exchange by market capitalization of its listed companies at US$30.1 trillion as of February 2018. The average daily trading value was approximately US$169 billion in 2013. The NYSE trading floor is located at 11 Wall Street and is composed of 21 rooms used for the facilitation of trading. A fifth trading room, located at 30 Broad Street, was closed in February 2007. The main building and the 11 Wall Street building were designated National Historic Landmarks in 1978.

Contents

The company is headquartered in El Paso, Texas; [11] its refineries are located in El Paso, Gallup, New Mexico, and St. Paul Park, Minnesota. These refineries have a combined crude oil processing capacity of approximately 242,500 barrels per day (38,550 m3/d). [12] A majority of products produced at these refineries are light products, consisting of gasoline, diesel fuel, and jet fuel. All four refineries have truck loading terminals. The El Paso refinery delivers to a number of other markets via pipeline. [13]

Texas State of the United States of America

Texas is the second largest state in the United States by both area and population. Geographically located in the South Central region of the country, Texas shares borders with the U.S. states of Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, New Mexico to the west, and the Mexican states of Chihuahua, Coahuila, Nuevo León, and Tamaulipas to the southwest, while the Gulf of Mexico is to the southeast.

Gallup, New Mexico City in New Mexico, United States

Gallup is a city in McKinley County, New Mexico, United States, with a population of 21,678 as of the 2010 census. A substantial percentage of its population is Native American, with residents from the Navajo, Hopi, and Zuni tribes. Gallup is the county seat of McKinley County and the most populous city between Flagstaff and Albuquerque, along the historic U.S. Route 66.

St. Paul Park, Minnesota City in Minnesota, United States

St. Paul Park is a city in Washington County, Minnesota, United States. The population was 5,279 at the 2010 census. It is located on the Mississippi River, five miles (8 km) downstream from St. Paul.

Western Refining owns and operates a wholesale division that works in conjunction with the refining operations. Through the refineries and these affiliated companies, Western Refining serves a broad customer base in Arizona, California, Colorado, Minnesota, Nevada, New Mexico, western Texas, Utah, Wisconsin, northern Chihuahua, Mexico, and the central East Coast region. [14] In late 2016, it was announced that the San Antonio, Texas based refining and logistics company Tesoro would purchase Western Refining for an estimated enterprise value of $6.4 Billion. [15] Stockholders from both companies approved the proposed deal on March 24, 2017, pending approval from the Federal Trade Commission. [16]

Arizona state of the United States of America

Arizona is a state in the southwestern region of the United States. It is also part of the Western and the Mountain states. It is the sixth largest and the 14th most populous of the 50 states. Its capital and largest city is Phoenix. Arizona shares the Four Corners region with Utah, Colorado, and New Mexico; its other neighboring states are Nevada and California to the west and the Mexican states of Sonora and Baja California to the south and southwest.

California State of the United States of America

California is a state in the Pacific Region of the United States. With 39.6 million residents, California is the most populous U.S. state and the third-largest by area. The state capital is Sacramento. The Greater Los Angeles Area and the San Francisco Bay Area are the nation's second- and fifth-most populous urban regions, with 18.7 million and 9.7 million residents respectively. Los Angeles is California's most populous city, and the country's second-most populous, after New York City. California also has the nation's most populous county, Los Angeles County, and its largest county by area, San Bernardino County. The City and County of San Francisco is both the country's second-most densely populated major city after New York City and the fifth-most densely populated county, behind only four of the five New York City boroughs.

Colorado State of the United States of America

Colorado is a state of the Western United States encompassing most of the southern Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains. It is the 8th most extensive and 21st most populous U.S. state. The estimated population of Colorado was 5,695,564 on July 1, 2018, an increase of 13.25% since the 2010 United States Census.

History

The El Paso refinery was originally two refineries across from each other on Trowbridge Avenue, one operated by Texaco, the other, larger, by Chevron Oil. In 1997 the company Refinery Holding was formed to manage the refineries; it purchased them outright in 2000. Western Refining purchased a pipeline system from Chevron capable of delivering 115,000 barrels of crude oil per day. In 2006 it became a publicly traded company on the New York Stock Exchange. [17]

Texaco, Inc. is an American oil subsidiary of Chevron Corporation. Its flagship product is its fuel "Texaco with Techron". It also owns the Havoline motor oil brand. Texaco was an independent company until its refining operations merged into Chevron Corporation in 2001, at which time most of its station franchises were divested to the Shell Oil Company. It began as the Texas Fuel Company, founded in 1901 in Beaumont, Texas, by Joseph S. Cullinan, Thomas J. Donoghue, Walter Benona Sharp, and Arnold Schlaet upon the discovery of oil at Spindletop.

Chevron Corporation American multinational energy corporation

Chevron Corporation is an American multinational energy corporation. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries. Chevron is engaged in every aspect of the oil, natural gas, and geothermal energy industries, including hydrocarbon exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world's largest oil companies; as of 2017, it ranked nineteenth in the Fortune 500 list of the top US closely held and public corporations and sixteenth on the Fortune Global 500 list of the top 500 corporations worldwide. It was also one of the Seven Sisters that dominated the global petroleum industry from the mid-1940s to the 1970s.

In August 28, 2006, Western Refining bought Giant Industries (GI) for $1.23 billion in cash, creating the fourth-largest publicly traded independent oil refiner in the USA. The combined company created the capacity to handle about 216,000 barrels a day from four refineries, about 84% more than Western's current capacity at the time. [18]

Giant Industries (NYSE: GI) is an oil refinery company headquartered in Scottsdale, Arizona in the United States.

In November 12, 2013, Western acquired ACON Investments and TPG’s ownership interests in Northern Tier Energy LP(NTI) for $775 million. This acquisition included the St. Paul Park Refinery which increased Western’s refining barrel capacity by 89,500 barrels per day. It also acquired pipeline access to Bakken and Canadian crude oil plus product terminals, storage tanks, rail facilities and Mississippi river dockage. The company also gained ownership of retail assets that included SuperAmerica retail channel of 163 company operated and 74 franchised convenience stores. [19]

SuperAmerica gas station chain

SuperAmerica was a chain of gasoline stations and convenience stores in the upper Midwest, based in Woodbury, Minnesota. It is owned by Marathon Petroleum. The first convenience store opened in the 1960s. SuperAmerica has 284 stores with 271 in Minnesota, 11 in Wisconsin and 2 in South Dakota.

Convenience store small store that stocks a range of everyday items

A convenience store, convenience shop, or corner store is a small retail business that stocks a range of everyday items such as groceries, snack foods, confectionery, soft drinks, tobacco products, over-the-counter drugs, toiletries, newspapers, and magazines. In some jurisdictions, convenience stores are licensed to sell alcohol, typically beer and wine. Such stores may also offer money order and wire transfer services, along with the use of a fax machine or photocopier for a small per-copy cost. They differ from general stores and village shops in that they are not in a rural location and are used as a convenient supplement to larger stores.

In addition to its refineries, Giant Industries, based in Scottsdale, Arizona, owned a crude-oil-gathering pipeline system based in Farmington, New Mexico, a fleet of crude-oil and finished-product truck transports and a chain of retail service stations and convenience stores in New Mexico, Colorado, and Arizona.

Current capacity

Main refinery in El Paso Western Refining.jpeg
Main refinery in El Paso

The current capacity of the El Paso refinery is 128,000 barrels per day. An expansion is in the planning stages for 2013/2014 to increase capacity to 150,000 barrel per day. [20] The refinery near Gallup, New Mexico, has a capacity of 26,000 barrels per day after an expansion during 2012. Western Refining also owns a refinery in Bloomfield, New Mexico, but it's currently closed.

Western Refining sold the Yorktown terminal and refinery as well as a segment of an oil pipeline in New Mexico to subsidiaries of Plains All American Pipeline Co for approximately $220 million. The company retained its East Coast wholesale business and continued to market petroleum products in the Mid-Atlantic region, but focused its refining and most of its wholesale, retail, and marketing operations in the US Southwest. [21] With the purchase of the St. Paul Park refinery, Western's total capacity is of approximately 242,500 barrels per day (38,550 m3/d).

Terminals and other locations

Western Refining has refined products terminals in Albuquerque and Bloomfield, New Mexico, and Yorktown, Virginia, asphalt terminals in Phoenix and Tucson, Arizona, Albuquerque, and El Paso. It also has a fleet of crude oil and finished product truck transports, and wholesale petroleum products operations in Arizona, California, Colorado, Nevada, New Mexico, Texas, Utah, Virginia and Maryland. [22]

Retail

Howdy's convenience store, part of Western Refining's retail services Howdy's convenience store.jpg
Howdy's convenience store, part of Western Refining's retail services

Western owns and operates more than 260 convenience stores and gas stations located in Arizona, Colorado, New Mexico, and Texas. [23] The company markets under its own brands of Giant, Mustang, Sundial, and (through Northern Tier Energy in the Minnesota, Wisconsin and South Dakota) SuperAmerica, plus a number of locations feature the brands of other oil companies. They also license Western branded fuel to other retail stores. [24] Western both purchases oil from the Mexican parastatal Pemex and sells refined oil products back to buyers in Mexico.

Western Refining Logistics

In July 2013 Western Refining hoped to raise $287.5 million in a public stock offering for its recently formed pipeline and storage subsidiary, Western Refining Logistics (WNRL). The subsidiary, formed as a limited partnership, will operate, develop, and acquire terminals, storage tanks, pipelines and other logistic assets, the company reported in a filing with the U.S. Securities and Exchange Commission. It now has 300 miles of crude oil pipelines and gathering systems, and storage and terminal facilities for crude oil and fuel in West Texas and New Mexico. [25]

The bulk of the money raised from the stock offering would go to the parent Western Refining to reimburse the company for the assets used to form the logistics company, Western reported in its filing. It would use $50 million of the money raised for general partnership purposes, it reported.

The logistics company will initially get all revenue through a 10-year, fee-based agreement with the parent Western Refining for pipeline, terminal and storage services it reported. The fees are expected to total almost $120 million next year, or 92 percent of its forecasted annual revenues of almost $131 million.

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